Consumer woes shift online as Just Eat targeted by hedge fund
After a bruising fortnight for the UK high street, retail and consumer woes have moved online as food ordering website Just Eat (JE.L) was targeted by a US hedge fund.
Cat Rock Capital, who has a 2% stake in Just Eat, has launched a public campaign against the company, accusing it of “unambitious targets and flawed incentive schemes that have significantly damaged the value of the business”.
This was put to Just Eat’s chief executive Peter Plumb and chairman Michael Evans in a letter from Cat Rock’s founder Alex Captain, with concerns mounting at the company’s growing competition from Uber Eats and Deliveroo.
Cat Rock have also held stakes in Rightmove (RMV.L), the online real estate portal which could now face difficulties as it announces further price declines in the nation’s housing market, suggesting uncertainty over Brexit and other economic factors are affecting the enthusiasm of buyers.
Asking prices for homes being listed for sale in Britain had their biggest fall in a two-month period since 2012, the website said. Prices for new sellers were down 1.5% in the month before December 8, with a fall of 1.7% in the month before that.
The bad news for online retail was further compounded by a surprise profit warning by ASOS (ASC.L). Shares fell 35% as trading opened on Monday morning.
Full year growth guidance has been revised to 15%, down from 20-25%, from a stock that had previously shrugged off the difficulties experienced by other retailers. Rival online clothing retailer Boohoo Group (BOO.L) was down almost 10% on the news in opening trading.
There was an ominous warning from chief executive Nick Beighton, who told a conference call on Monday morning: “I’ve been astonished at the level of promotions and discounting, especially around Black Friday.
“In fashion we are seeing an unprecedented level of discounting, certainly something I have not seen before, and that’s across the board.”
